Micron (MU) closed at $46.72 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.18%.
Coming into today, shares of the chipmaker had lost 2.4% in the past month. In that same time, the Computer and Technology sector gained 4.77%, while the S&P 500 gained 3.89%.
Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be December 18, 2019. The company is expected to report EPS of $0.48, down 83.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.01 billion, down 36.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.39 per share and revenue of $20.29 billion, which would represent changes of -62.36% and -13.33%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MU. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.6% lower within the past month. MU is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, MU is currently trading at a Forward P/E ratio of 19.9. Its industry sports an average Forward P/E of 19.9, so we one might conclude that MU is trading at a no noticeable deviation comparatively.
The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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